July Fuel Prices Review: The cost of living could rise higher if the expected fuel price hike is implemented today. Estimates show that from today, fuel prices could rise to the highest mark in Kenya’s history. This will be Sh. 130 per litre of petrol.
If diesel and kerosene don’t get a subsidy, their prices will rise to by Sh. 2.50 a litre and Sh. 3.50 per litre respectively. “The current pump prices are based on the barrel at $67.71, up from $63.94 previously, and an estimated $73.10 for the review that kicks off midnight,” a report that appeared in a local daily said.
The subsidy that motorists will be hoping for today has been coming from a cut on the oil marketers’ margin, which has been regulated by the State since 2010, with the dealers receiving compensation estimated at nearly Sh. 2 billion.
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“The subsidy has been supported by billions of shillings that has been raised from fuel consumers through the Petroleum Development Levy, which was increased to Sh. 5.40 a litre in July last year from Sh. 0.40, representing a 1,250 percent rise,” a report in the Business Daily on the July fuel prices review said. “The fund is meant to cushion consumers from volatility in fuel prices but it will also see motorists lose out when paying the Sh. 5.40 for a litre at the pump.”
